HomeMy WebLinkAboutFlorida House of Representatives 2012FLORIDA HOUSE OF REPRESENTATIVES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27,
,,28-
HB 365 2012
A bill to be entitled
An act relating to public employees; amending s.
112.18, F.S.; revising conditions under which certain
firefighters, law enforcement officers, correctional
officers, or correctional probations officers who
suffer or have died from any of specified medical
conditions are presumed to have been injured or killed
accidentally and in the line of duty; revising the
conditions under which the presumption with respect to
disability due to any of specified diseases is against
occurrence in the line of duty for purposes of
workers' compensation claims; changing an evidentiary
standard; amending s. 175.061, F.S.; providing duties
of the board of trustees relating to the reporting of
expenses and the operation under an administrative
expense budget; amending s. 175.071, F.S.; revising
requirements of the board relating to the employment
of legal counsel, actuaries, and other advisers;
amending s. 175.101, F.S.; providing for the
discontinuation of excise taxes under certain
conditions; amending s. 175.231, F.S.; providing
medical conditions or behaviors that are appropriate
for consideration in denying or overcoming the
presumption of accidental disabilities or death
suffered in the line of duty for firefighters;
changing an evidentiary standard; amending s. 175.351,
,_F,..S .;. ,:revising provisions relating to benefits paid
.from,thepremium tax by a municipality or,special fire -
Page 1 of 30
CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
F L O R I D A' H O U S E O 'F REPRESENTATIVES
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
.55.
H6.365
control district that has its own pension plan;
providing definitions; providing a process for
determining the allocation of the premium tax revenues
to a supplemental plan; amending s. 175.361, F.S.;
providing certain powers and responsibilities to
municipalities and special fire control districts
relating to termination of plans and distribution of
funds; amending s. 185.02, F.S.; revising the
definition of the term "compensation" or "salary" for
purposes of police officers' pensions; amending s.
185.05, F.S.; authorizing a municipality to change the
municipal representation of the board of trustees
pursuant to certain requirements; providing duties of
the board of trustees relating to the reporting of
expenses and the operation under an administrative
expense budget; amending s. 185.06, F.S.; revising
requirements of the board relating to the employment
of legal counsel, actuaries, and other advisers;
amending s. 185.08, F.S.; providing for the
discontinuation of excise taxes under certain
conditions; amending s. 185.34, F.S.; providing
medical conditions or behaviors that are appropriate
for consideration in denying or overcoming the
presumption of accidental disabilities or death
suffered in the line of duty for police officers;
changing an evidentiary standard; amending s. 185.35,
F,.S ,revising_provisions relating 'to benefits.paid,b.y,.,
a municipality that has its own pension=plan;-
Page 2of30
CODING: Words stricken are deletions; words underlined are additions.
2012
hb0365-00
FLORIDAHOUSE OF REPRESENTATIVES
HB 365
2012
57 providing definitions; providing a process for
58 determining the allocation of the premium tax revenues
59 to a supplemental plan; amending s. 185.37, F.S.;
60 providing certain powers and responsibilities to
61 municipalities relating to termination of plans and
62 distribution of funds; providing a declaration of
63 important state interest; providing an effective date.
64
65 Be It Enacted by the Legislature of the State of Florida:
66
67 Section 1. Section 112.18, Florida Statutes, is. amended to
68 read:
69 112.18 Firefighters and law enforcement or correctional
70 officers; special provisions relative to disability.-
71 (1)(a) Any condition or impairment of health of any
72 Florida state, municipal, county, port authority, special tax
73 district, or fire control district firefighter or any law
74 enforcement officer, correctional officer, or correctional
75 probation officer as defined in s. 943.10(1), (2), or (3), who
76 has been employed by the current employer for at least 5 years
77 and who is less than 37 years of age, caused by tuberculosis,
78 heart disease, or hypertension resulting in total or partial
79 disability or death shall be presumed to have been accidental
80 and to,have been suffered in the line of duty unless the
81 contrary be shown by a preponderance of the c mpctcnt evidence.
82 However, any such firefighter, correctional officer,
83,correctional probation,_officer, or law en.for.cement,,officermust.....
.,84 have_successfully:passed a physical examination upon entering
Page 3 of 30
CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
F L `O R I D A . H O' U S E OF R E P R E S E N T A T I V E S
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
1,11.
;_q1-2
HB 365 2012
into any such service as a firefighter, correctional officer,
correctional probation officer, or law enforcement officer,
which examination failed to reveal any evidence of any such
condition. Risk factors and epidemiological data relating to
nonwork-related conditions unique to an individual, such as
blood cholesterol, body mass index, history of tobacco and
alcohol use, and other medical conditions or behaviors that are
associated with the disease or condition subject to the
presumption, are appropriate for consideration in denying or
overcoming the presumption. Such presumption does not apply to
benefits payable under or granted in a policy of life insurance
or disability insurance, unless the insurer and insured have
negotiated for such additional benefits to be included in the
policy contract.
(b)1. For any workers' compensation claim filed under this
section and chapter 440 occurring on or after July 1, 2010, a
firefighter, law enforcement officer correctional officer, or
correctional probation officer as defined in s. 943.10(1), (2),
or (3) suffering from tuberculosis, heart disease, or
hypertension is presumed not to have incurred such disease in
the line of duty as provided in this section.if the firefighter,
law enforcement officer, correctional officer, or correctional
probation officer:
a. Departed in a material fashion from the prescribed
course of treatment of his or her personal physician and the
departure is demonstrated to have resulted in a significant
;aggravation of_the-tuberculosis, heart disease or hypertension:_.:
resulting in:disability or increasing the disability or heed for
Page 4 of 30
-CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE O' F REPRESENTATIVES
H B 365 2012
113 medical treatment; or
114 b. Was previously compensated pursuant to this section and
115 chapter 440 for tuberculosis, heart disease, or hypertension and
116 thereafter sustains and reports a new compensable workers'
117 compensation claim under this section and chapter 440, and the
118 firefighter, law enforcement officer, correctional officer, or
119 correctional probation officer has departed in a material
120 fashion from the prescribed course of treatment of an authorized
121 physician for the preexisting workers' compensation claim and
122 the departure is demonstrated to have resulted in a significant
123 aggravation of the tuberculosis, heart disease, or hypertension
124 resulting in disability or increasing the disability or need for
125 medical treatment.
126 2. As used in this paragraph, "prescribed course of
127 treatment" means prescribed medical courses of action and
128 prescribed medicines for the specific disease or diseases
129 claimed and as documented in the prescribing physician's medical
130 records.
131 3. If there is a dispute as to the appropriateness of the
132 course of treatment prescribed by a physician under sub-
133 subparagraph 1.a. or sub -subparagraph 1.b. or whether a
134 departure in a material fashion from the prescribed course of
135 treatment is demonstrated to have resulted in a significant
136 aggravation of the tuberculosis, heart disease, or hypertension
137 resulting in disability or increasing the disability or need for
138 medical treatment, the firefighter, law enforcement officer,
_., , _139_ correctional —officer, or correctional probation-- officer, is
,entitled to seek an,yindependent medical examination pursuant to
Page 5 of 30
_CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE OF R E P •R E S E N T A T I V E S
HB 365 2012
141 s. 440.13 (5) .
142 4. A firefighter, law enforcement officer, correctional
143 officer, or correctional probation officer is not entitled to
144 the presumption provided in this section unless a claim for
145 benefits is made prior to or within 180 days after leaving the
146 employment of the employing agency.
147 (2) This section authorizes each governmental entity
148 specified in subsection (1) to negotiate policy contracts for
149 life and disability insurance to include accidental death
150 benefits or double indemnity coverage which shall include the
151 presumption that any condition or impairment of health of any
152 firefighter, law enforcement officer, or correctional officer
153 caused by tuberculosis, heart disease, or hypertension resulting
154 in total or partial disability or death was accidental and
155 suffered in the line of duty, unless the contrary be shown by a
156 preponderance of the compctcnt evidence.
157 Section 2. Subsection (8) is added to section 175.061,
158 Florida Statutes, to read:
159 175.061 Board of trustees; members; terms of office;
160 meetings; legal entity; costs; attorney's fees. —For any
161 municipality, special fire control district, chapter plan, local
162 law municipality, local law special fire control district, or
163 local law plan under this chapter:
164 (8) The board of trustees shall:
165 (a) Provide a detailed accounting report of its expenses
166 for each fiscal year to the plan sponsor and the Department of
167.-.::,Management-Services-and make the report available to .every.
168 _;:member of -_theplan . The report must include, but heed not be
Page 6 of 30
-CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA. HOUSE OF REPRESENYATIVES
HB 365 2012
169 limited to, all administrative expenses that, for purposes of
170 this subsection, are expenses relating to any legal counsel,
171 actuary, plan administrator, and all other consultants, and all
172 travel and other expenses paid to or on behalf of the members of
173 the board of trustees or anyone else on behalf of the plan.
174 (b) Operate under an administrative expense budget for
175 each fiscal year, provide a copy of the budget to the plan
176 sponsor, and make available a copy of the budget to plan members
177 before the beginning of the fiscal year. The administrative
178 expense budget must regulate the administrative expenses of the
179 board of trustees. If the board of trustees amends the
180 administrative expense budget, the board must provide a copy of
181 the amended budget to the plan sponsor and make available a copy
182 of the amended budget to plan members before the amendment takes
183 effect.
184 Section 3. Subsection (7) of section 175.071, Florida
185 Statutes, is amended to read:
186 175.071 General powers and duties of board of trustees.-
187 For any municipality, special fire control district, chapter
188 plan, local law municipality, local law special fire control
189 district, or local law plan under this chapter:
190 (7) To assist the board in meeting its responsibilities
191 under this chapter, the board, if it so elects, and subject to
192 s. 175.061(8), may:
193 (a) Employ independent legal counsel at the pension fund's
194 expense.
195. (b) Employ an independent actuary,=as defined in
19.6 175.032(7), at the pension fund's expense:,
Page 7 of 30
.CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE O. F REPRESENTATIVES
197
198
HB 365 2012
(c) Employ such independent professional, technical, or
other advisers as it deems necessary at the pension fund's
199 expense.
200
201 If the board chooses to use the municipality's or special
202 district's legal counsel or actuary, or chooses to use any of
203 the municipality's or special district's othcr professional,
204 technical, or other advisers, it must do so only under terms and
205 conditions acceptable to the board.
206 Section 4. Subsection (4) is added to section 175.101,
207 Florida Statutes, to read:
208 175.101 State excise tax on property insurance premiums
209 authorized; procedure. —For any municipality, special fire
210 control district, chapter plan, local law municipality, local
211 law special fire control district, or local law plan under this
212 chapter:
213 (4) If a municipality or special fire control district
214 revokes its participation under this chapter in accordance with
215 s. 175.411, the excise tax authorized by this section shall not
216 continue to be imposed on property insurance policies covering
217 property situated within the municipality or special fire
218 control district.
219
220 This section also applies to any municipality consisting of a
221 single consolidated government which is made up of a former
222 county and one or more municipalities, consolidated pursuant to.
.223:: :the authority:_in s. 3 or s. 6 (e) Art. VII:I ofthe.,State._
2Constitutionand -to property! insurancep olicies "covers ngr
Page 8 of 30
:CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE OF REPRESENTATIVES
H B 365 2012
225 property within the boundaries of the consolidated government,
226 regardless of whether the properties are located within one or
227 more separately incorporated areas within the consolidated
228 government, provided the properties are being provided fire
229 protection services by the consolidated government. This section
230 also applies to any municipality, as provided in s.
231 175.041(3)(c), which has entered into an interlocal agreement to
232 receive fire protection services from another municipality
233 participating under this chapter. The excise tax may be levied
234 on all premiums collected on property insurance policies
235 covering property located within the corporate limits of the
236 municipality receiving the fire protection services, but will be
237 available for distribution to the municipality providing the
238 fire protection services.
239 Section 5. Section 175.231, Florida Statutes, is amended
240 to read:
241 175.231 Diseases of firefighters suffered in line of duty;
242 presumption. —For any municipality, special fire control
243 district, chapter plan, local law municipality, local law
244 special fire control district, or local law plan under this
245 chapter, any condition or impairment of health of a firefighter,
246 who has been employed by the current employer for at least 5
247 years and who is less than 37 years of age, caused by
248 tuberculosis, hypertension, or heart disease resulting in total
249 or partial disability or death shall be presumed to have been
250 accidental and suffered in the line of duty unless the contrary
251 , s,__shown 1by...a. preponderance of the compctcnt .evidence,:._provided'...
y
thatsuch firefighter shall have successfull passed a physical""s'
Page9of30
;CODING: Words f;tricken are deletions; words underlined are additions.
hb0365-00
F L' O R I D A. H O U S E OF R E P R E S E NT A T I V E S
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
HB 365 2012
examination before entering into such service, which examination
failed to reveal any evidence of such condition. Risk factors
and epidemiological data relating to nonwork-related conditions
unique to an individual, such as blood cholesterol, body mass
index, history of tobacco and alcohol use, and other medical
conditions or behaviors that are associated with the disease or
condition subject to the presumption, are appropriate for
consideration in denying or overcoming the presumption. This
section shall be applicable to all firefighters only with
reference to pension and retirement benefits under this chapter.
Section 6. Section 175.351, Florida Statutes, is amended
to read:
175.351 Municipalities and special fire control districts
having their own pension plans for firefighters. —For any
municipality, special fire control district, local law
municipality, local law special fire control district, or local
law plan under this chapter, in order for municipalities and
special fire control districts with their own pension plans for
firefighters, or for firefighters and police officers if
included, to participate in the distribution of the tax fund
established pursuant to s. 175.101, local law plans must meet
the minimum benefits and minimum standards set forth in this
chapter.
(1) Notwithstanding any other provision, retirement
benefits provided pursuant to this chapter and the use of the
income from the premium tax in s. 175.101 must be determined and
implemented in .accordance with, -the colle.cti-ve bargaining
'process, and --where collective, bargaining is : not • applicable,.
Page 10 of 30
:.CODING: Words &tricker} are deletions; words underlined are additions.
hb0365-00
FLORIDA'HOUSE O' F REPRESENTATIVS
HB 365 2012
281 accordance with the pension plan, except as provided in
282 subsection (2). If the term of a collective bargaining agreement
283 ends without a new collective bargaining agreement in effect,
284 the retirement benefits of a plan operating pursuant to this
285 chapter shall revert to the minimum benefit provisions of this
286 chapter for the period of time from the end of the collective
287 bargaining agreement until the effective date of the subsequent
288 collective bargaining agreement, and the income from the premium
289 tax may be used for any retirement benefit provided pursuant to
290 this chapter as determined unilaterally by the municipality or
291 special fire control district. If a municipality has a pension
292 plan for fircfightcrs, or a pcnsion plan for fircfightcrs and
293 policc fficcrs if includcd, which in thc opinion of thc
294 division mccts thc minimum benefits and minimum standards set
295 e�th mn hi t-ems;, t e— Bard ef� ustee e Tepe rsien
296 plan, as approved by a maj rity of fircfightcrs of thc
297 municipality, may:
298 (a) Placc thc inc me from thc premium tax in s. 175.101 in
299 such pension plan f r thc c lc and exclusive use of its
300 fircfightcrs, or for fircfightcrs and policc officcrs if
301 includcd, where it. shall become an integral part of that. pcnsion
302 plan and shall be used to pay extra here -fits te.thc fircfightcrs
303 included in that pension plan; or
304--Plac-e thc i r c from thc p-rcatitiffl tax in s. 175.101 in
305 a separate supplemental plan to pay cxtra benefits to
306 fircfightcrs, r to fircfightcrs and policc officcrs if
= 307 - g—in sue' tee--auppTe e '
30.8 (_2.) The.._p.remi.um _.tax provided by thz�; chapter ;,hall in. all
Page 11 of 30
CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE OF R •E P R E S E N T A T I V E S
HB 365 2012
309 cascs bc used in its cntircty to provide extra benefits t
310
311 included. For However, local law plans in effect on October 1,
312 1998, that do not must comply with the minimum benefit
313 provisions of this chapter, as only to the extent that
314 additional premium tax revenues become available, such revenues
315 shall be used to incrementally fund the cost of such compliance
316 as provided in s..175.162(2)(a). If a plan is in compliance with
317ouchm. ; mt cncfitpr-e sions, as subsequent additional
318 premium tax revenues become available, they must bc used t
319 pr vide extra benefits. Local law plans created by special act
320 before May 27, 1939, are deemed to comply with this chapter. For
321 the purpose of this chapter, the term=
322 (a) "additional premium tax revenues" means revenues
323 received by a municipality or special fire control district
324 pursuant to s. 175.121 which exceed that amount received for
325 calendar year 1997. Once a plan is in compliance with the
326 minimum benefit provisions of this chapter, the provisions of
327 subsection (1) apply.
328 (b) "Extra benefits" means benefits in addition to or
329 greater than.thosc provided to general employees f the
330
331 firefighters on March 12, 1999.
332 (3) A retirement plan or amendment to a retirement plan
333 may not be proposed for adoption unless the proposed plan or
334 amendment contains an actuarial estimate of the costs involved.
:.335. __.The _ _Su_ch proposed, plan or proposed plan change may
{ 1336 ,adopted_: without _the approval _of the mun4cpal.ty,_ special fire
Page 12 of 30
- ::CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE OF R E P R E S E N 'T A T I V E S
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
HB 365 2012
control district, or, if required where permitted, the
Legislature. Copies of the proposed plan or proposed plan change
and the actuarial impact statement of the proposed plan or
proposed plan change shall be furnished to the division before
the last public hearing thereon. Such statement must also
indicate whether the proposed plan or proposed plan change is in
compliance with s. 14, Art. X of the State Constitution and
those provisions of part VII of chapter 112 which are not
expressly provided in this chapter. Notwithstanding any other
provision, only those local law plans created by special act of
legislation before May 27, 1939, are deemed to meet the minimum
benefits and minimum standards only in this chapter.
(4) Notwithstanding any other provision, with respect to
any supplemental plan municipality:
(a) A local law plan and a supplemental plan may continue
to use their definition of compensation or salary in existence
on March 12, 1999.
(b) Section 175.061(1)(b) does not apply, and a local law
plan and a supplemental plan shall continue to be administered
by a board or boards of trustees numbered, constituted, and
selected as the board or boards were numbered, constituted, and
selected on December 1, 2000.
(c) The election set forth in paragraph (1) (b) is deemed
to have been made.
(d) The annual amount of premium tax revenues allocated to
the supplemental plan shall be determined through collective
,,.bargaining, where applicable, and in ae:c.ordance withthe.,pension,.
phan.mhere collective- bargaining does not apply _ If the_ term of
Page 13 of 30 .--
CODING: Words 6tricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE OF REPRESENTATIVES
HB365
2012
365 a collective bargaining agreement ends without a new collective
366 bargaining agreement in effect, the amount.of premium tax
367 revenues allocated to the supplemental plan shall be determined
368 unilaterally by the municipality or special fire control
369 district for the period of time from the end of the collective
370 bargaining agreement until the effective date of the subsequent
371 collective bargaining agreement.
372 (5) The retirement plan setting forth the benefits and the
373 trust agreement, if any, covering the duties and
374 responsibilities of the trustees and the regulations of the
375 investment of funds must be in writing, and copies made
376 available to the participants and to the general public.
377 (6) A municipality or special fire control district may
378 unilaterally establish one or more new plans, or benefit levels
379 within a plan, which provide different benefit levels for plan
380 members based on the member's date of hire if the new plan or
381 benefit level provides pension benefits that, in the aggregate,
382 meet or exceed the minimum benefits set forth in this chapter,
383 as determined by the plan's or employer's actuary. A
384 municipality or special fire control district may unilaterally
385 elect to maintain. an existing plan and join the Florida
386 Retirement System or establish a defined contribution retirement
387 plan for employees hired after a specified date. A municipality
388 or special fire control district choosing to operate under this
389 subsection shall use the premium tax provided under this chapter
390
391
for the current plan or benefit level, for any additional plan
or. benefit...,level, f.or-:contributions to °.the;Fl:orida-'Retirement-
Page 14 of 30
CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
F L O R' I D A H O U S rE OF REPHRESENTATIVES
HB 365 2012
392 System, or for contributions to. a defined contribution
393 retirement plan.
394 Section 7. Section 175.361, Florida Statutes, is amended
395 to read:
396 175.361 Termination of plan and distribution of fund. —For
397 any municipality, special fire control district, chapter plan,
398 local law municipality, local law special fire control district,
399 or local law plan under this chapter, the plan may be terminated
400 by the municipality or special fire control district. Upon
401 termination of the plan by the municipality or special fire
402 control district for any reason or because of a transfer,
403 merger, or consolidation of governmental units, services, or
404 functions as provided in chapter 121, or upon written notice by
405 the municipality or special fire control district to the board
406 of trustees that contributions under the plan are being
407 permanently discontinued, the rights of all employees to
408 benefits accrued to the date of such termination and the amounts
409 credited to the employees' accounts are nonforfeitable. The fund
410 shall be distributed in accordance with the following
411 procedures:
412 (1) The board of trustees, subject to prior written
413 approval of the municipality or special fire control district,
414 shall determine the date of distribution and the asset value
415 required to fund all the nonforfeitable benefits after taking
416 into account the expenses of such distribution. The board shall
417 inform the municipality or special fire control district if
418 additional assets :,are : required, in which event _ the municipality ._
-or-.special-fire-.control district shall
Page 15 of 30
CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA. HOUSE OF REPRESENTATIVES
HB 365
2012
420 support the plan until all nonforfeitable benefits have been
421 funded.
422 (2) The board of trustees, subject to prior written
423 approval of the municipality or special fire control district,
424 shall determine the method of distribution of the asset value,
425 whether distribution shall be by payment in cash, by the
426 maintenance of another or substituted trust fund, by the
427 purchase of insured annuities, or otherwise, for each
428 firefighter entitled to benefits under the plan as specified in
429 subsection (3).
430 (3) The board of trustees, subject to prior written
431 approval of the municipality or special fire control district,
432 shall distribute the asset value as of the date of termination
433 in the manner set forth in this subsection, on the basis that
434 the amount required to provide any given retirement income is
435 the actuarially computed single -sum value of such retirement
436 income, except that if the method of distribution determined
437 under subsection (2) involves the purchase of an insured
438 annuity, the amount required to provide the given retirement
439 income is the single premium payable for such annuity. The
440 actuarial single -sum value may not be less than the employee's
441 accumulated contributions to the plan, with interest if provided
442 by the plan, less the value of any plan benefits previously paid
443 to the employee.
444 (4) If there is asset value remaining after the full
445 distribution specified in subsection (3), and after the payment
:..446 .-:of:;any_;expenses incurred with such distribution,:such excess-:
4;47 shall ._be . retur-ned - to the municipality 0-et
Page 16 of 30
;CODING: Words striskeR are deletions; words underlined are additions.
hb0365-00
FLORIDA' HOUSE OF R E P R E S' E N T A T I V E S
HB 365 2012
448 district, less return to the state of the state's contributions,
449 provided that, if the excess is less than the total
450 contributions made by the municipality or special fire control
451 district and the state to date of termination of the plan, such
452 excess shall be divided proportionately to the total
453 contributions made by the municipality or special fire control
454 district and the state.
455 (5) The board of trustees, subject to prior written
456 approval of the municipality or special fire control district,
457 shall distribute, in accordance with subsection (2), the amounts
458 determined under subsection (3).
459
460 If, after 24 months after the date the plan terminated or the
461 date the board received written notice that the contributions
462 thereunder were being permanently discontinued, the municipality
463 or special fire control district or the board of trustees of the
464 firefighters' pension trust fund affected has not complied with
465 all the provisions in this section, the Department of Management
466 Services shall effect the termination of the fund in accordance
467 with this section and in the manner having the least fiscal
468 impact on the municipality or special fire control district.
469 Section 8. Subsection (4) of section 185.02, Florida
470 Statutes, is amended to read:
471 185.02 Definitions. —For any municipality, chapter plan,
472 local law municipality, or local law plan under this chapter,
473 the following words and phrases as used in this chapter shall
,474 have._thefollowing meanings, unless a different meaning. -.is,
475 plainly required by the context:
Page 17 of 30 :: V
CODING: Words stri4en are deletions; words underlined are additions.
hb0365-00
FLORIDA H O U S E OF REPTZESENTATIVES
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502.
503
HB 365 2012
(4) "Compensation" or "salary" means, for noncollectively
bargained service earned before July 1, 2011, or for service
earned under collective bargaining agreements in place before
July 1, 2011, the total cash remuneration including overtime'—'
paid by the primary employer to a police officer for services
rendered, but not including any payments for extra duty or
special detail work performed on behalf of a second party
employer. A local law plan may limit the amount of overtime
payments which can be used for retirement benefit calculation
purposes; h wcvcr, such overtime limit may n t be less than 300
hours per officer per calendar year. For noncollectively
bargained service earned on or after July 1, 2011, or for
service earned under collective bargaining agreements entered
into on or after July 1, 2011, the term has the same meaning
except that when calculating retirement benefits, up to 300
hours per year in overtime compensation may be included as
specified in the plan or collective bargaining agreement, but
payments for accrued unused sick or annual leave may not be
included.
(a) Any retirement trust fund or plan that meets the
requirements of this chapter does not, solely by virtue of this
subsection, reduce, or diminish the monthly retirement income
otherwise payable to each police officer covered by the
retirement trust fund or plan.
(b) The member's compensation or.salary contributed as
.employee -elective salary reductions or deferrals to any salary
,reduction,, deferr,ed.compensation, or taxsheltered annuity
pr.ogramauthorized under the Internal Revenue:Code shall be
Page 18 of 30
_CODING: Words stris are deletions; words underlined are additions.
hb0365-00
FLORIDA. HOUSE OF REPRESENTATIVES
504
505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
:53.0„
53-1
,HB 365 2012
deemed to be the compensation or salary the member would receive
if he or she were not participating in such program and shall be
treated as compensation for retirement purposes under this
chapter.
(c) For any person who first becomes a member in any plan
year beginning on or after January 1, 1996, compensation for
that plan year may not include any amounts in excess of the
Internal Revenue Code s. 401(a) (17) limitation, as amended by
the Omnibus Budget Reconciliation Act of 1993, which limitation
of $150,000 shall be adjusted as required by federal law for
qualified government plans and shall be further adjusted for
changes in the cost of living in the manner provided by Internal
Revenue Code s. 401(a) (17) (B). For any person who first became a
member before the first plan year beginning on or after January
1, 1996, the limitation on compensation may not be less than the
maximum compensation amount that was allowed to be taken into
account under the plan as in effect on July 1, 1993, which
limitation shall be adjusted for changes in the cost of living
since 1989 in the manner provided by Internal Revenue Code s.
401 (a) (17) (1991) .
Section 9. Subsection (8) is added to section 185.05,
Florida Statutes, to read:
185.05 Board of trustees; members; terms of office;
meetings; legal entity; costs; attorney's fees. —For any
municipality, chapter plan, local law municipality, or local law
plan under this chapter:
(8) Theboardof trustees shall:
(a)_ :Provide;. a detailed accounting::report,.._of , t,s ,expenses
Page 19 of 30
CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE 'OF R E P R E S E N T A T I V E S
HB365 2012
532 for each fiscal year to the plan sponsor and the Department of
533 Management Services and make the report available to every
534 member of the plan. The report must include, but need not be
535 limited to, all administrative expenses that, for purposes of
536 this subsection, are expenses relating to any legal counsel,
537 actuary, plan administrator, and all other consultants, and all
538 travel and other expenses paid to or on behalf of the members of
539 the board of trustees or anyone else on behalf of the plan.
540 (b) Operate under an administrative expense budget for
541 each fiscal year, provide a copy of the budget to the plan
542 sponsor, and make available a copy of the budget to plan members
543 before the beginning of the fiscal year. The administrative
544 expense budget must regulate the administrative expenses of the
545 board of trustees. If the board of trustees amends the
546
547
548
549
550
551
552
553
554
555
556
557
558
559
administrative expense budget, the board must provide a copy of
the amended budget to the plan sponsor and make available a copy
of the amended budget to plan members before the amendment takes
effect.
Section 10. Subsection (6) of section 185.06, Florida
Statutes, is amended to read:
185.06 General powers and duties of board of trustees. —For
any municipality, chapter plan, local law municipality, or local
law plan under this chapter:
(6) To assist the board in meeting its responsibilities
under this chapter, the board, if it so elects, and subject to
s. 185.05(8), may:
(a) Empl.oy.independent legal counsel at the pension fund's.�
expense;
Page 20 of 30
.CODING: Words stricken are deletions; words underlined are additions:
hb0365-00
FLORIDA HOUSE OF REPRESENTAT IVES
560
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
576
577
578
579
580
581
582
583
584
585
586
587.
HB 365 2012
(b) Employ an independent actuary, as defined in s.
185.02(8), at the pension fund's expense.
(c) Employ such independent professional, technical, or
other advisers as it deems necessary at the pension fund's
expense.
If the board chooses to use the municipality's or special
district's legal counsel or actuary, or chooses to use any of
the municipality's other professional, technical, or other
advisers,.it must do so only under terms and conditions
acceptable to the board.
Section 11_. Subsection (4) is added to section 185.08,
Florida Statutes,,to read:
185.08 State excise tax on casualty insurance premiums
authorized; procedure. —For any municipality, chapter plan, local
law municipality, or local law plan under this chapter:
(4) If a municipality revokes its participation under this
chapter in accordance with s. 185.60, the excise tax authorized
by this section shall not continue to be imposed on casualty
insurance policies covering property situated within the
municipality.
Section 12. Section 185.34, Florida Statutes, is amended
to read:
185.34 Disability in line of duty. —For any municipality,
chapter plan, local law municipality, or local law plan under
this chapter, any condition or impairment of health of any and
.,police,.off.i.cer.-,o.fficcrs employed in the state, who has. -been
,employed:bv the current employer for at,;.le_ast,,,_.5...,,years:
Page 21 of 30
CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE OF REPRESENTATIVES
HB365 2012
588 less than 37 years of age, caused by tuberculosis, hypertension,
589 heart disease, or hardening of the arteries, resulting in total
590 or partial disability or death, shall be presumed to be
591 accidental and suffered in line of duty unless the contrary be
592 shown by a preponderance of the competent evidence. Any
593 condition orimpairment of health caused directly or proximately
594 by exposure, which exposure occurred in the active performance
595 of duty at some definite time or place without willful
596 negligence on the part of the police officer, resulting in total
597 or partial disability, shall be presumed to be accidental and
598 suffered in the line of duty, provided that such police officer
599 shall have successfully passed a physical examination upon
600 entering such service, which physical examination including
601 electrocardiogram failed to reveal any evidence of such
602 condition, and, further, that such presumption shall not apply
603 to benefits payable under or granted in a policy of life
604 insurance or disability insurance. Risk factors and
605 epidemiological data relating to nonwork-related conditions
606 unique to an individual, such as blood cholesterol, body mass
607 index, history of tobacco and alcohol use, and other medical
608 conditions or behaviors that are associated with the disease or
609 condition subject to the presumption, are appropriate for
610 consideration in denying or overcoming the presumption. This
611 section shall be applicable to all police officers only with
612 reference to pension and retirement benefits under this chapter.
613 Section 13. Section 185.35, Florida Statutes, is amended
614 to read.:
•185._35 - ,Municipalities having their..,o-wn .-pension. plans• -for
• Page 22 of 30.
CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA H O U S. E 'OF REPRESENTATIVES
HB 365 2012
616 police officers. —For any municipality, chapter plan, local law
617 municipality, or local law plan under this chapter, in order for
618 municipalities with their own pension plans for police officers,
619 or for police officers and firefighters if included, to
620 participate in the distribution of the tax fund established
621 pursuant to s. 185.08, local law plans must meet the minimum
622 benefits and minimum standards set forth in this chapter.=
623 (1) Notwithstanding any other provision, retirement
624 benefits provided pursuant to this chapter and the use of the
625 income from the premium tax in s. 185.08 must be determined and
626 implemented in accordance with the collective bargaining
627 process, and where collective bargaining is not applicable, in
628 accordance with the pension plan, except as provided in
629 subsection (2). If the term of a collective bargaining agreement
630 ends without a new collective bargaining agreement in effect,
631 the retirement benefits of a plan operating pursuant to this
632 chapter shall revert to the minimum benefit provisions of this
633 chapter for the period of time from the end of the collective
634 bargaining agreement until the effective date of the subsequent
635 collective bargaining agreement, and the income from the premium
636 tax may be used f.or any retirement benefit provided pursuant to
637 this chapter as determined unilaterally by the municipality. If
638 a municipality has a pension plan f r police fficcrs, or for
639 police officers and firefighters if included, which, in thc
640 opinion of thc division, mccts thc minimum benefits and minimum
641
pen,�.ion ,.plan, ao. approved by a majority f p li.cc_.officcro_
643 of thc municipality, may:
Page 23 of 30
CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE OF .R E FP R E S E N T A T I V E S
644
HB 365 2012
(a) Place the income from the p-rcmium tax in . 185.08 in
645
646 officcro, or its p lice officers and firefighters if included,
647 where it shall bcc me an integral part of that pension plan and
648 shall be used to pay cxtra benefits to thc policc fficcro
649 includcd in that pcnoion plan; or
650 (b) May place thc income from thc prcmium tax in s. 185.08
651 in a separate supplemental plan to pay extra benefits to thc
652 policc fficers, or p licc officers and firefighters if
653 includcd, participating in such separate supplemental plan.
654 (2) The prcmium tax provided by this chapter shall in all
655 cases bc used in its cntircty to pr vidc cxtra benefits to
656 policc officers, or to policc fficers and firefighters if
657 includcd. For However, local law plans in effect on October 1,
658 1998, that do not must comply with the minimum benefit
659 provisions of this chapter, as only t thc extent that
660 additional premium tax revenues become available, such revenues
661 shall be used to incrementally fund the cost of such compliance
662 as provided in s. 185.16(2). If a plan is in c mpliancc with
663 such minimum benefit pr visions, as subsequent additional tax
664 revenues become available, they shall bc used to provide cxtra
665 benefits. Local law plans created by special act before May 27,
666 1939, shall be deemed to comply with this chapter. For the
667 purpose of this chapter, the term=
668 (a) "additional premium tax revenues" means revenues
669 received by a municipality pursuant to s. 185.10 which exceed
6.70 the amount received.,for calendar. year 1.997- Once a ;plan•is_ in
,67:1 ,compliance with_ the_ minimum benefit provisions of`this chapter,
Page 24 of 30
-CODING: Words stricken are deletions; words underlined are additions.:
hb0365-00
FLORIDAHOUSE O F R E P R E S E *N T A T I V E S
HB 365
2012
672 the provisions of subsection (1) apply.
673 (b) "Extra benefits" m ans benefits in addition to or
674
675
676 officers n March 12, 1999.
677 (3) A retirement plan or amendment to a retirement plan
678 may not be proposed for adoption unless the proposed plan or
679 amendment contains an actuarial estimate of the costs involved.
680 The Such proposed plan or proposed plan change may not be
681 adopted without the approval of the municipality or, if required
682 where permitted, the Legislature. Copies of the proposed plan or
683 proposed plan change and the actuarial impact statement of the
684 proposed plan or proposed plan change shall be furnished to the
685 division before the last public hearing thereon. Such statement
686 must also indicate whether the proposed plan or proposed plan
687 change is in compliance with s. 14, Art. X of the State
688 Constitution and those provisions of part VII of chapter 112
689 which are not expressly provided in this chapter.
690 Notwithstanding any other provision, only those local law plans
691 created by special act of legislation before May 27, 1939, are
692 deemed to meet the minimum benefits and minimum standards only
693 in this chapter.
694 (4) Notwithstanding any other provision, with respect to
695 any supplemental plan municipality:
696 (a) Sccti n 185.02(4) (a) does not apply, and A local law
697 plan and a supplemental plan may continue to use their
_ 69,$ definition ..of :compensation or salary inexistence on March.'.;
699 1999.
Page25of30
CODING: Words str+ekee are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSEOF REPRESENTATIVES
HB 365
2012
700 (b) Section.185.05(1)(b) does not apply, ,and a local law
701 plan and a supplemental plan must continue to be administered by
702 a board or boards of trustees numbered, constituted, and
703 selected as the board or boards were numbered, constituted, and
704 selected on December 1, 2000.
.705 (c) The election set forth in paragraph (1)(b) is deemed
706 to have been made.
707 (d) The annual amount of premium tax revenues allocated to
708 the supplemental plan shall be determined through collective
709 bargaining, where applicable, and in accordance with the pension
710 plan where collective bargaining does not apply. If the term of
711 a collective bargaining agreement ends without a new collective
712 bargaining agreement in effect, the amount of premium tax
713 revenues allocated to the supplemental plan shall be determined
714 unilaterally by the municipality for the period of time from the
715 end of the collective bargaining agreement until the effective
716 date of the subsequent collective bargaining agreement.
717 (5) The retirement plan setting forth the benefits and the
718 trust agreement, if any, covering the duties and
719 responsibilities of the trustees and the regulations of the
720 investment of funds must be in writing and copies made available
721 to the participants and to the general public.
722
723
724
725
72.6 benefits ..that, ,;.in the. aggregate, meet orexceed t-he'. minimum'•
r_7,27 _,`.benefi-ts .. set -forth in this chapter, as determined, by the plan's
page 26 of 30
-CODING: Words tricker} are deletions; words underlined are additions.
(6) A municipality may unilaterally establish one or more
new plans, or benefit levels within a plan, which provide
different benefit levels for plan members based on the member's
date of hire if the new plan or benefit level provides pension
hb0365-00
FLORDAIHOUSE OF REPRESENTATIVESS
728
729
730
731
732
733
734
735
736
737
738
739
740
741
742
743
744
745
746
747
748
749
750
751
752
753
HB 365 2012
or employer's actuary. A municipality may unilaterally elect to
maintain an existing plan and join the Florida Retirement System
or establish a defined contribution retirement plan for
employees hired after a specified date. A municipality choosing
to operate under this subsection shall use the premium tax
provided under this chapter for the current plan or benefit
level, for any additional plan or benefit level, for
contributions to the Florida Retirement System, or for
contributions to a defined contribution retirement plan.
Section 14. Section 185.37, Florida Statutes, is amended
to read:
185.37 Termination of plan and distribution of fund. —For
any municipality, chapter plan, local law municipality, or local
law plan under this chapter, the plan may be terminated by the
municipality. Upon termination of the plan by the municipality
for any reason, or because of a transfer, merger, or
consolidation of governmental units, services, or functions as
provided in chapter 121, or upon written notice to the board of
trustees by the municipality that contributions under the plan
are being permanently discontinued, the rights of all employees
to benefits accrued to the date of such termination or
discontinuance and the amounts credited to the employees'
accounts are nonforfeitable. The fund shall be distributed in
accordance with the following procedures:
(1) The board of trustees, subject to prior written
approval of the municipality, shall determine the date of
distribution and the asset value require.d. o fund- all the
nonforfeitable benefitafter taking into account the expenses
•
Page 27of30.
CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
FLORIDA HOUSE OF REPRESENTATIVES
.H13365 2012
756 of such distribution. The board shall inform the municipality if
757 additional assets are required, in which event the municipality
758 shall continue to financially support the plan until all
759 nonforfeitable benefits have been funded.
760 (2) The board of trustees, subject to prior written
761 approval of the municipality, shall determine the method of
762 distribution of the asset value, whether distribution shall be
763 by payment in cash, by the maintenance of another or substituted
764 trust fund, by the purchase of insured annuities, or otherwise,
765 for each police officer entitled to benefits under the plan, as
766 specified in subsection (3).
767 (3) The board of trustees, subject to prior written
768 approval of the municipality, shall distribute the asset value
769 as of the date of termination in the manner set forth in this
770 subsection, on the basis that the amount required to provide any
771 given retirement income is the_actuarially computed single -sum
772 value of such retirement income, except that if the method of
773 distribution determined under subsection (2) involves the
774 purchase of an insured annuity, the amount required to provide
775 the given retirement income is the single premium payable for
776 such annuity. The actuarial single -sum value may_ not be less
777 than the employee's accumulated contributions to the plan, with
778 interest if provided by the plan, less the value of any plan
779 benefits previously paid to the employee.
780 (4) If there is asset value remaining after the full
781 distribution specified in subsection (3), and after payment of
782,anyexpenses incurredwith such distribut:ions.uch e.xoesss:hall':.._
7,8.3, .be ; returned -to ::the._.munic pality, less return. to the state of ,the
Page 28of30
:_CODING: Words ctricken are deletions; words underlined are additions.
hb0365-00
FLORIDA H 0 U S. E 'O F R E P R E S E N T A T I V E S
HB 365 2012
784 state's contributions, provided that, if the excess is less than
785 the total contributions made by the municipality and the state
.786 to date of termination of the plan, such excess shall be divided
787 proportionately to the total contributions made by the
788 municipality and the state.
789 (5) The board of trustees, subject to prior written
790 approval of the municipality, shall distribute, in accordance
791 with the manner of distribution determined under subsection (2),
792 the amounts determined under subsection (3).
793
794 If, after 24 months after the date the plan terminated or the
795 date the board received written notice that the contributions
796 thereunder were being permanently discontinued, the municipality
797 or the board of trustees of the municipal police officers'
798 retirement trust fund affected has not complied with all the
799 provisions in this section, the Department of Management
80.0 Services shall effect the termination of the fund in accordance
801 with this section and in the manner having the least fiscal
802 impact on the municipality.
803 Section 15. The Legislature finds that a proper and
804 legitimate state purpose is served when employees and retirees
805 of the state and its political subdivisions, and the dependents,
806 survivors, and beneficiaries of such employees and retirees are
807 extended the basic protections afforded by governmental
808 retirement systems that provide fair and adequate benefits and
809 that are managed, administered, and funded in an actuarially
8.10_ sound.man,ner;as_required by s. 14, Art -X--of:the---State_
8,11, Constitution, -and, -part VII of chapter 112, Florida Statutes:._
• Page 29 of 30
;.CODING: Words stricken are deletions; words underlined are additions.
hb0365-00
F LORR IDA HOUSE OF REPR E S E N T A T I V E S
812
813
814
HB 365 2012
Therefore, the Legislature determines and declares that this act
fulfills an important state interest.
Section 16. This act shall take effect July 1, 2012.
Page 30 of 30
= CODING: Words stricken are deletions; words underlined are additions.
hb0365-00